ExxonMobil Guyana says Liza Destiny’s flash gas compressor is being upgraded

ExxonMobil Guyana, an affiliate of the US super-major ExxonMobil, has announced that upgrades on a new flash gas compressor (FGC) for the Liza Destiny floating production, storage and off-loading (FPSO) vessel installed at the Liza-1 oilfield are underway. Installation operations are anticipated to commence in mid-2022, and in the meantime, the third-stage FGC unit that is currently aboard the FPSO remains in full operation, the company said.

The new FGC was originally due to have been delivered to Guyana in December 2021 but is still in Germany, where it was manufactured. ExxonMobil Guyana’s media and communications manager Janelle Persaud explained: “We have adjusted the timeline for its delivery and installation in order to provide the highest assurance of reliable performance.”

ExxonMobil made the decision to keep the FGC in Germany after it was determined that more comprehensive tests on the equipment were necessary to ensure that the FGC would be ready prior to installation.

While the company awaits the FGC’s arrival, several alternative long-term solutions are being pursued in an attempt to eliminate the need for second- and third-stage FGCs on the FPSO. ExxonMobil Guyana is also looking to overhaul the existing screw design of current compressors and is considering a new centrifugal compressor package.

ExxonMobil Guyana is working to refine its gas handling practices after coming under scrutiny from the Environmental Protection Agency (EPA) in Guyana. To date, the company has paid GYD930mn ($4.46mn) in fines to the agency as a result of associated gas flaring in the course of extracting crude oil from Liza-1. According to the EPA, this fine was levied in line with the Polluter Pays Principle (PPP), a provision of the country’s Environmental Protection Act of 1996.

ExxonMobil Guyana outlined its plans to reduce the negative environmental impact of gas flaring in the amendments it made to its environmental permit for the Liza-1 project in May 2021. The amendments include changes to emissions reporting requirements, while also stipulating times when flaring can take place. They also obligate ExxonMobil Guyana to pay for excessive flaring incidents that cause carbon dioxide emissions.

Liza-1 is the only oil-producing section of the Stabroek block, which is located offshore in the Guyana-Suriname basin. It is known to contain at least 10bn barrels of oil equivalent (boe) in recoverable reserves.